Effective people and productivity management

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Effective people and productivity management

• Peter Scott
• Peter Scott Consulting

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Effective people and productivity management

• Measuring the financial value of human capital
• Making best use of your people to increase
  profitability
• Partners and profitability

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Measuring the financial value of human capital
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Is your business leaking money like a sieve?
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Leaking like a sieve?

• because you do not have the
• right..

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.leadership and influencing skills to get
the best out of your people?
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Is this you?
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.people environment to make your business a real
success?
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Are we all going in the same direction?
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.mechanisms to prevent the attrition of high
quality performers?
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This will happen to your talent unless

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.systems to manage relationship conflict?
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Heavyweight gorilla

• You cant manage me.Im a big biller!

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.systems to manage the people risks in your
business?
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Law Firm Risks
Management
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Examples of People Risks

• Advice/client care/client matters
• Client relationships
• Loss of teams/partners
• Real cost of staff turnover/recruitment
• Regulatory regimes
• Equal opportunities
• Age and Sex discrimination harassment
• Disability
• Racial equality
• Dismissals
• Maternity
• Working time regulations
• Pensions Management

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.culture to support high performance levels?
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Building a performance culture
Values
Skills Behaviours
Performance Metrics Qual/Quant
Performance Review
Closing the Performance Gap
Learning Development Strategy
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What is the real cost of replacing people?
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The real cost of replacing people

• Disruption
• Recruitment fees
• Training of new recruits
• Effect on morale of people leaving
• Loss of relationships / clients

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How to retain and get the best out of your
people?

• Help them maximise their full potential
• This requires investment in your people

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Investment in your people?

• For example
• Who has a New Partner Programme designed
• to bring people through to partnership?
• and which continues throughout partnership?

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Investment in your people requires?

• Leadership and vision
• Values
• - Training
• - Mentoring
• Coaching
• Empowering
• Supporting

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Are you investing sufficient in your people to
realise their financial value to your business?
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Building profitability through people management

• Stop leaking money like a sieve!
• Building people performance
• Make best use of your people resource

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To do this you will need a strategy

• Strategy is a realistic plan or course of
• action to gain competitive advantage which
• has clear and achievable objectives and
• uses available resources

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Your greatest resource?

• Your people

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Building people performance
Values
Skills Behaviours
Performance Metrics Qual/Quant
Performance Review
Closing the Performance Gap
Learning Development Strategy
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What does it take to succeed at your firm?

• What do you value?
• Do you invest in what you value?
• Do you reward what you value?

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An integrated strategy to best use your people
resources
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Delegation is key to profitability

• Be a better boss by doing less work!
• Match the level of work to the appropriate level
  of expertise / cost
• Sell at the right price!
• improved margin

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Leverage - you need to be aiming for this

• Equity partners
  

Other fee earners
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Not this
Equity partners

Other fee earners
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Leverage will differ from firm to firm

• Will depend on
• A firms work type / client type mix
• How a firm adds value to its clients

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You will add value if

• You provide clients with what they want and
  more
• At prices they perceive to be value for money
  and
• You do this better than the competition

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High Value Added Services
High value- added services strategic impact on
client generally wisdom/experience driven

• Focus on specific client types/work types
• Seek leadership in a few, cohesive segments
• Nurture wisdom/experience within the firm

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Low Value Added Services
Low value added firms will compete on processes
and price technology driven services with
minimum professional input

• Value enhanced by
• Driving down cost ensure lowest cost
• Investing in standardising processes
• Facilitating implementation of solutions

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Low Value Added Services

• To be successful firms need to
• constantly squeeze out more value for same cost
• Ensure financial strength to stay the course
• Avoid creating the perception of reduced quality

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But greater leverage requires more risk management

• Supervision
• Training
• Case management systems
• Knowledge on part of management

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And leverage and delegation involve teamworking

• Why are teams important?
• Together
• Each
• Achieves
• More

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Teams provide

• Support
• Ability to delegate
• Continuity of service delivery
• Sense of purpose
• Accountability / peer pressure
• Esprit de corps

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Are all your people team players?
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How not to be a team player?

• we have no room for those who put their personal
  agenda ahead of the interests of the clients or
  the office
• David Maisters Predictive package

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Do own thing
Thats a great idea for the rest of
you
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But people resources are scarce

• Cannot be all things to all men
• Need to build focus into your business
• Focus on
• - work types
• - client types
• in order to gain competitive advantage

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Balancing your profit and your partner numbers
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How many equity partners should you have to
maximise profit?

• Every firm is different but factors to be
• considered may include
• Your work type / client type mix
• How a firm best adds value
• Ability to supervise and manage
• Culture of firm / financial ambitions

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Your partners?

• Are you getting the best out of your partners?
• Who does NOT have an underperforming partner?

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How much is partner underperformance costing you?

• Direct financial loss?
• Loss of good partners and staff?
• Loss of morale?
• Loss of relationships / clients?

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What are you now going to do to stop your firm
leaking money like a sieve?